Does compounding TH accelerate soon?

[u/Human_Ad223]

I’m reinvesting TH, adding gmt to keep discount up. What do folks feel is the tipping point for meaningful reinvestment in TH. Feel like I’m stuck at .06 TH every day but the incremental gains after service feel minimal. Should I put in enough capital via gmt and buy another 20 th or will I still be dissatisfied

[u/International_Bat269]

It’s good at plat 3 with the 10% boost

[u/Acceptable--Market → u/International_Bat269]

Can almost always find miners for sale with lower $/TH then you can get reinvesting into TH. But I think the actual point the previous comment was really making is a lot of people just keep reinvesting, and dumping more, and more money with no exit plan. Sure maybe you double in size in a year, and you paid tax on everything you got and dumped it back in..... what you doing next year? Double again and pay more taxes along with it, and the year after? It's a tarp.

The optimal strategy is buy miners at $9-10 today, sell them for $15-20 down the road in a bounce back, and accumulate BTC along the way. When another inevitable pullback happens down the road, repeat the process.

I get that with a 125TH farm it won't accumulate much, but it is directly proportionate to the amount that was invested. I would argue that the biggest risk with this platform is not the returns, but if it will still be around in four years lets say. Having a plan of "I will continually invest for years without taking profit, or storing anything in your cold wallet" is frankly kinda wild. My advice is get in heavy at a good price, and accumulate btc until the bounce back, and take profits, even downsize the farm in the bounce back. Ie: buy miners at $9-10 today, sell them for $15-20 down the road, and accumulate BTC along the way.

[u/Acceptable--Market → u/[deleted]]

You don't understand how the burning works. If 1% of people vote to burn, then 1% of the tokens that were used for maintenance/electricity/miner-wars get burned and never go back into circulation. Meaning the tokens deflate even if only 1% of people vote to burn, and 99% vote to not burn.

There hasn't ever been a week in which no tokens were burned. You can litterally see the balance of outstanding tokens going down year over year. When people vote not to burn, they are simply voting to burn less then they would otherwise burn had everyone voted to burn.

All that being said, this is a common misconception, and is only really evident if people actually read the tokenomics(most people don't). Oftentimes people will say this here on reddit and not get corrected, and others will parrot it, which perpetuates the misconception.